Urban Management and Fiscal Federalism

Abstract

The defínition of town has become relative in the last two decades, principally because of changing policy of legal status of settlements. Therefore the urbanized management is inde- pendent from the administrative status. In Hungary the laws on local government establish their structure of regulation (mostly) on operation of settlements and (less) of voted and official bodies by the counties. On the other hand the fiscal federalism focuses on the interac- tions between the system elements.

In line with coming to the fore of evaluation of budget fiinctions the self government sub- system should be defined rather as dynamic than static. Also it is needed to think in terms of function units instead fundamental units. These might be citied and urbanization fiinctions which could be created or inspired by direct regulation.

In this context the democratic elements could not be separated from aspects of effective- ness and even more of social efficiency (regional/territory), also from harmonised framing of distributional systems.